The Government will return its Employment Rights Bill to the Commons on Monday, demonstrating commitment to delivering workers' protections amid concerns the legislation could be weakened. The bill is in its final parliamentary stages and faces opposition from the House of Lords.
The Employment Rights Bill would introduce parental leave from the first day of employment and strengthen statutory sick pay provisions. The legislation aims to provide enhanced protections for workers across various employment areas.
The Government plans to overturn amendments tabled by the Lords that would dilute day-one protection from unfair dismissal, according to the Department of Business and Trade. Ministers will also reverse proposed changes that would limit access to the planned ban on exploitative zero hours contracts.
Political backing and opposition
Prime Minister Keir Starmer (Labour) called the bill a "core part" of the party's agenda, stating it would "make a real difference to people's lives". Business Secretary Peter Kyle said businesses had been consulted "every step of the way" and argued that giving workers more security would benefit the economy.
Shadow business secretary Andrew Griffith wrote to the Office of Budget Responsibility asking it to assess the bill's economic impact in its upcoming report. The Conservative politician described the legislation as a "toxic package that will clobber businesses, crush growth, and destroy jobs".
The OBR said earlier this year it could not yet factor the Employment Rights Bill into its forecasting due to insufficient policy detail. However, a committee member suggested the workers' rights plans could have a "negative" impact on employment levels.
Economic implications
Government analysis from last year estimated the bill would cost businesses between £900 million and £5 billion annually. The legislation has faced renewed scrutiny after Angela Rayner and Justin Madders, who were heavily involved in promoting the bill, left their posts as deputy prime minister and employment minister respectively.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
